Week 6 Lecture:Week 6 Lecture:

Television in Television in AmericaAmerica

Defining Features of TV

• universal medium, now in 99% of all U.S. homes

• dominant source of news and entertainment

• on 7 hours a day in each household

• most viewers watch 4 hours daily

• Expensive to make: one-hour drama, $1.5 million per show

05:0

5

03:0

7

03:1

4

04:0

2 04:3

8

03:0

2

03:0

7

04:2

9

Men Women Teens Children

All Family Members Tune In

(Time Spent Per Day In Hours)(Time Spent Per Day In Hours)

Source: Nielsen Media Research, NTI Annual Averages

199

5

200

3

199

5

200

3

199

5

200

3

199

5

200

3

199

5

200

3

199

5

200

3

199

5

200

3

199

5

200

3

Advertisers Spend More Money on Television

Source: Universal McCann

$58,365

$44,031 $46,067

$18,877$13,776 $10,995

Television Surpassed Newspapers in 1994, Television Surpassed Newspapers in 1994, and the Lead Has Widened Ever Sinceand the Lead Has Widened Ever Since

2002 (In Millions)2002 (In Millions)

Television Newspapers

Direct Mail Radio Yellow Pages Magazines

Advertisers Spend More Money on Local Broadcast Television

than Network, Cable and Syndication

Source: Universal McCann *Includes PAX, UPN & WB

Television Components 2002 (In Millions)Television Components 2002 (In Millions)

$24,034

$15,000 $16,297

$3,034

Station TV Network TV

Cable TV Syndication TV*

Total TV Advertising Spending

Total UK Ad Spend 2003:

£3.7 Billion = $6.6 Billion

Total US Ad Spend 2002: $58.4 Billion

BBC License Fee Income:

£2.4 Billion = $4.2 Billion

Impact on Media

• Books: General decline, go for more popular/superstar authors and subjects

• Newspapers: fewer papers, more graphics, less text, less hard news

• Magazines: demassify (specialize)

• Music: Success depends on videos/movies

• Movies: Become more specialized, lucrative

• Radio: demassify (specialize)

NetworksNetworks

1. Older broadcast networks 1. Older broadcast networks NBC, CBS, NBC, CBS, ABC.ABC.

NetworksNetworks

1. Older broadcast networks1. Older broadcast networks NBCNBC CBSCBS ABCABC

2. Newer networks: 2. Newer networks: Fox (1985)Fox (1985) WB WB UPN (1995) UPN (1995) Pax (1998)Pax (1998)

Merge into CW (2006)Merge into CW (2006)

Becomes Ion Becomes Ion Television (2007)Television (2007)

Television Ratings and SharesTelevision Ratings and Shares

Rating = ratio of station viewers to all people in the market

Share = ratio of viewers viewing station relative to number of people in market actually watching TV at same time

Example: 500,000 people in market. 200,000 watching TV. 100,000 watching station KBLA

ratings = 100,000/500,000 or 20% ratingshare = 100,000/200,000 or a 50% share

Getting Programs on the AirGetting Programs on the Air

LOCAL: The biggest expenses, revenue, staff, and

production efforts all go into news. Local stations usually produce only local news, interviews, and sports shows

National:On the network level, efforts go into prime time

shows (8-11 p.m., EST). New ideas start with a “pilot” show; if well received, more shows are ordered. In a year a network produces about 25 pilots.

History: 1950s History: 1950s

• In 1952 FCC reserves 12 VHF and 70 UHF channels for In 1952 FCC reserves 12 VHF and 70 UHF channels for TV use. TV use.

• Early TV uses radio as model.Early TV uses radio as model.

• Video tape solves program “storage” problems. Video tape solves program “storage” problems.

• Color broadcasting begins in the late 1950s.Color broadcasting begins in the late 1950s.

• Live TV shows, experimental programming, and high-Live TV shows, experimental programming, and high-quality drama create television’s “golden years.”quality drama create television’s “golden years.”

History: 1960s

• TVs in 95 percent of U.S. homes

• Network news expands from 15 to 30 minutes; most people begin relying on TV as their major news source.

• TV journalism gets high marks (coverage of JFK, King, and RFK assassinations, Civil Rights movement, Apollo space program, etc.).

• PBS born with the Public Broadcasting Act of 1967.

History: History: 1970s

• Surgeon General’s study finds modest link between heavy TV viewing and violence among some children.

• Citizen action groups form to involve themselves with TV content and FCC policies.

• FCC adopts Prime Time Access Rule, mandates no network programming between 7:30-8 pm (E.S.T.).

• Cable TV surfaces as serious competitor.

History: History: 1980s - Present

• Three new networks (Fox, UPN, and WBN) increase audience and ad share erosion of original broadcast networks.

• Cable expands to 68% of U.S. homes; special-interest channels, PPV, and premium movie channels now combine to make cable TV a full-fledged competitor to original networks.

Advent of VCRsAdvent of VCRs

VCRs in 90% of U.S. homes by 2000; effects are:

Cassette rentals become multibillion dollar industry.

VCRs encourage trend toward timeshifting.

Advertisers worry about 3 new phenomena: zapping commercials, zipping through commercials, grazing through channels with a remote control.

Telecommunications Act of 1996Telecommunications Act of 1996

• An FCC rule creates first TV program rating system.

• It also creates the “V-chip,” a built-in TV device to help parents regulate program viewing for kids.

• On the programming front, high audience draw and cheap-to-make shows debut: news magazine series, revived game shows, and “reality TV.”

Broadcast TV OrganizationBroadcast TV Organization

• FCC licenses stations in individual communities called “markets.” There are 210 TV markets in the U.S. of varying sizes.

• Seven networks supply programs to affiliates: ABC, CBS, NBC, Fox, UPN, WBN, and Paxnet.

• PBS serves the non-commercial TV system.

• Independents are stations with no network affiliation.

TV Organization by FunctionTV Organization by Function

• Production: programming from three major sources:• local origination (news, sports, community affairs)• syndicated programming (Oprah, Jeopardy, etc.) • network programming (for affiliate stations)

• Distribution: three major distribution methods• broadcast networks• cable networks• syndication companies

• Exhibition• VHF channels, 2-13• UHF channels, 14-69

Scheduling TacticsScheduling Tactics

Zeroing in on your audienceZeroing in on your audience CounterprogrammingCounterprogramming Hammock EffectHammock Effect StackingStacking StuntingStunting

OwnershipOwnership

By 1998, all but one network was under a corporate flagNBC owner: General Electric

ABC owner: Walt Disney Corporation

CBS owner: Viacom (Sumner Redstone)

Fox owner: Rupert Murdoch’s News Corporation

CW owner: CBS and Warner Bros.

The Telecommunications Act of 1996 allows a firm to own unlimited stations, provided their combined reach does not exceed 35 percent of the U.S. population.

CABLE NETWORKSCABLE NETWORKS

Program sources:Program sources: • original productions CNN, ESPN, C-SPAN• movies HBO, Showtime, Cinemax• syndicated programs network reruns, game

shows

Revenue sources:Revenue sources: • advertising• carriage fees fee network charges local system to

carry their programming• subscription fees

Technology Drives Media Technology Drives Media FragmentationFragmentation

Technology Drives Media Technology Drives Media FragmentationFragmentation

VCRVCR Cable TelevisionCable Television Digital Broadcast/InternetDigital Broadcast/Internet Satellite TransmissionSatellite Transmission Tivo/DVRTivo/DVR Internet based television (Hulu)Internet based television (Hulu)

Fragmentation of Primetime Fragmentation of Primetime Network TV Audience in 1990sNetwork TV Audience in 1990s

NBC

UPN

ABC

CBS

FOX

WB

18- to 34-year-olds

Young Families

35- to 49-year-olds

Urban young adults (male)18- to 34-year-old urban blacks

Teens

Fall 2001 ScheduleFall 2001 Schedule

NBCNBC

8:008:00 FriendsFriends

9:009:00 Will and GraceWill and Grace

9:309:30 Just Shoot MeJust Shoot Me

10:0010:00 ER ER

UPN8:00 The

Hughleys8:30 One on One9:00 The Parkers9:30 Girlfriends

Fall 2001 ScheduleFall 2001 Schedule

NBCNBC

8:008:00 FriendsFriends

9:009:00 Will and GraceWill and Grace

9:309:30 Just Shoot MeJust Shoot Me

10:0010:00 ER ER

UPN8:00 The

Hughleys8:30 One on One9:00 The Parkers9:30 Girlfriends

3 Black Characters across all shows

3 White Characters across all shows

Media Conglomeration: Media Conglomeration: Number of Corporations Number of Corporations Dominating Mass MediaDominating Mass Media

1983198350 Companies50 Companies 1987198729 Companies29 Companies 1990199023 Companies23 Companies 1997199710 Companies10 Companies 200020006 (3 foreign owned)6 (3 foreign owned) 2006200688

Largest Media Mergers (dollars)Largest Media Mergers (dollars)

19831983340 million340 million

1997199719 billion when ABC merged with 19 billion when ABC merged with DisneyDisney

20002000350 billion when Time-Warner 350 billion when Time-Warner merged with AOLmerged with AOL

Top 20 Network Shows 2003Top 20 Network Shows 2003

Top 10 TV Programs - Regularly Scheduled        (Rating)    1       AMERICAN IDOL-TUESDAY   FOX     15.5   2       AMERICAN IDOL-WEDNESDAY FOX     15.3   3       DANCING WITH THE STARS  ABC     12.3   4       DANCING W/STARS RESULTS ABC     11.4   5       MENTALIST, THE  CBS     10.0   5       NBC SUNDAY NIGHT FOOTBALL       NBC     10.0   7       CSI     CBS     8.1    8       NCIS    CBS     8.0    9       60 MINUTES      CBS     7.6    9       SURVIVOR: GABON CBS     7.6    

2008 Top 10 TV Programs - Single Telecast   

(Rating)    1       FOX SUPER BOWL XLII     FOX     02/03/2008      43.1   2       FOX SUPER BOWL POST GAME        FOX     02/03/2008   30.1   3       FOX NFC CHAMPIONSHIP    FOX     01/20/2008      29.0   4       SUMMER OLYMPICS TUE PRIME1     NBC   08/12/2008    20.0   5       FOX NFC PLAYOFF-PST-SUN FOX     01/13/2008      18.8   5       SUMMER OLYMPICS OPEN CEREM   NBC  08/08/2008   18.8   7       ACADEMY AWARDS  ABC     02/24/2008      18.7   8       SUMMER OLYMPICS SUN PRIME   NBC 08/10/2008    18.1   9       AFC DIVISIONAL PLAYOFF  CBS     01/12/2008      17.9   9       SUMMER OLYMPICS THU PRIME   NBC     08/14/2008     17.9   

Top 10 Broadcast and Cable Programs, Top 10 Broadcast and Cable Programs,

October 2009October 2009

80 Rank:103

203

213

221

251

295

304

317